📅 2024-09-10 — Session: Analyzed and Visualized Firm Profit Strategies
🕒 00:25–00:45
🏷️ Labels: Collusion, Profit Analysis, Game Theory, Nash Equilibrium, Python, Weibull Distribution
📂 Project: Business
⭐ Priority: MEDIUM
Session Goal
To analyze and visualize firm profit strategies under different economic scenarios, including Nash equilibrium, collusion, and deviation strategies, and to simulate a two-spell duration model using statistical methods.
Key Activities
- Conducted a detailed analysis of collusive profits and critical discount factors for two firms, identifying issues with negative profits and suggesting model adjustments.
- Created plots to visualize profits for two firms under Nash equilibrium, collusive, and deviation strategies using Python and matplotlib.
- Adjusted profit calculations in a game theory model to reflect realistic scenarios, updating the code to ensure profits vary based on firm output quantities.
- Simulated a two-spell duration model using a Weibull baseline hazard, generating covariates, parameters, and random effects, and implemented the model in Python.
- Analyzed the impact of random effects and covariates on individual hazard rates in a Weibull distribution model.
Achievements
- Successfully visualized firm profit strategies under various economic scenarios.
- Enhanced the accuracy of profit calculations in game theory models.
- Completed the simulation of a two-spell duration model and analyzed its statistical implications.
Pending Tasks
- Further refine the model assumptions for collusion conditions to prevent negative profits.
- Explore additional economic scenarios for firm strategy visualization.